Do they really need a 25 million dollar elementary school? Or do they just think they can pay 10% of what it costs and get free money from the government?

It seems like there should be another solution, but they probably legislated themselves into a corner by limiting class size, requiring so many square feet of football pitch per student, and other very nice, but not essential things.

Sucks to be them, sucks more to be the people who end up holding the bag when they municipality or school district goes Chapter 9.

I was going to blame some of this on assholes who don't have to worry about re-election by the time the bonds are due and get to live high on public adoration in the meantime. However, the guy they spoke to is a moron.

fiver5:It's California, they can just raise taxes to get that money back.

Not really. That's part of their problem. Tax increases have to go to the voters or be approved by a congressional supermajority (if I'm not mistaken). Though the Democrats do have one of those in CA now...

"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."...Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."

vygramul:simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.

Our local school district is DEAD LAST in our state, yet it spends more money than every other district int he state but one, over $15,000 per student per year.

That means by the time they graduate we have spent $180,000 on their k-12 education. Its insane.

The School District defends its policy of social advancement, sending children on from 3rd grade who cannot read at grade level. They claim to graduate 85% of their students, but they only count the ones who make it to Senior Year. They actually lose 50% of the students between freshman and senior years. Of those 85%, only 5% are certified ready for higher education or work without remedial training. They graduated, but they cannot do basic algebra or write intelligent reports. (intelligible)

We tried to get a new school board elected this last election, first time in 20 years they have been challenged from the outside. In the last 20 years every single school board member has been either picked by our local democratic party or is a former member of the school administration. They have wasted three quarters of a billion dollars on results that decline every single year for the last 20.

The single worst place you can put your children around here is the public school system, but because there is a 50 million dollar budget and unlimited taxation authority, the Democrats simply will not let it go. They even managed to recall a special ballot for a retiring member after one of our candidates was the only person to file to run in the special election.

It had literally not happened in anyones memory, they assumed there would be an appointment by the state department of education like always. So when our guy was the only one there, they put pressure on the County Clerk to recall the ballot, then had the state education director say that the election couldn't be held because the resignation wasn't accepted for 21 days......one day longer than the filing deadline. They went so far to ignore the fact that the information they used to deny the election WASNT AVAILABLE UNTIL AFTER THE BALLOTS HAD BEEN PRINTED.

They literally sat there with straight faces and said that information after the fact justified the actions taken before the fact. Which is a good thing for them, otherwise what they did would be illegal under state law. But the Governor is a democrat so go figure there was no interest in an investigation into the matter.

Blame your local school board if your schools owe a billion dollars, but good luck getting rid of them.

"So if we take out this loan, we can defer the payments for 20 years, at which point we'll be paying several thousand percent interest?""Yes.""Well let's see, I retire in 10 years so... let's do it!""But what about when the loans come due and suddenly the district is out of money?""What part about me retiring in ten years didn't you get?"

vygramul:simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.

I swear this is true: A illegal stole this guys identity and paid off half his debt. he was like "fark it I'll wait 4 more years before reporting it"

drjekel_mrhyde:vygramul: simplicimus: vygramul: simplicimus: In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.Who are they borrowing from? Loan Sharks?

[charlesmobley.files.wordpress.com image 800x486]

Just wow.

Yeah - we get those ads here in VA. I never paid them much mind until I noticed the numbers in the fine print.

I swear this is true: A illegal stole this guys identity and paid off half his debt. he was like "fark it I'll wait 4 more years before reporting it"

"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."

It would be foolish not to take advantage of getting $25 million when I had to spend just $2.5 million in advance for the wealth transfer fee, Moran says.

Am I the only one who thinks that deal sounds like a classic Nigerian scam? (I know I'm not.)

FTFA:"In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.

Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table.""

Why would I leave $25 million on the table, Mr. Charles Ramsay?

I'd leave $25 million on the table if I had to pay $34 million to pick it up.

You are not "getting" a brand-new $25 million school. You are "PAYING $34 million to get a $25 million school".

There is no possible way that doing so makes sense, and you are an idiot for trying to pretend it does.

Our local school district is DEAD LAST in our state, yet it spends more money than every other district int he state but one, over $15,000 per student per year.

That means by the time they graduate we have spent $180,000 on their k-12 education. Its insane.

The School District defends its policy of social advancement, sending children on from 3rd grade who cannot read at grade level. They claim to graduate 85% of their students, but they only count the ones who make it to Senior Year. They actually lose 50% of the students between freshman and senior years. Of those 85%, only 5% are certified ready for higher education or work without remedial training. They graduated, but they cannot do basic algebra or write intelligent reports. (intelligible)

We tried to get a new school board elected this last election, first time in 20 years they have been challenged from the outside. In the last 20 years every single school board member has been either picked by our local democratic party or is a former member of the school administration. They have wasted three quarters of a billion dollars on results that decline every single year for the last 20.

The single worst place you can put your children around here is the public school system, but because there is a 50 million dollar budget and unlimited taxation authority, the Democrats simply will not let it go. They even managed to recall a special ballot for a retiring member after one of our candidates was the only person to file to run in the special election.

It had literally not happened in anyones memory, they assumed there would be an appointment by the state department of education like always. So when our guy was the only one there, they put pressure on the County Clerk to recall the ballot, then had the state education director say that the election couldn't be held because the resignation wasn't accepted for 21 days......one day longer than the filing deadline. They went so far to ignore the fact that the information they used to deny the election WASNT AVAILABLE UNTIL AFTER THE BALLOTS HAD BEEN PRINTED.

They literally sat there with straight faces and said that information after the fact justified the actions taken before the fact. Which is a good thing for them, otherwise what they did would be illegal under state law. But the Governor is a democrat so go figure there was no interest in an investigation into the matter.

Blame your local school board if your schools owe a billion dollars, but good luck getting rid of them.

our schools are great. we live in a very mixed race and income urban setting but all our public schools are in the top %10 and budgeting is painless. YMMV.

Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.

rewind2846:Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.

rewind2846:Considering the asshole contingent in this state is holding on to prop13 (the one that totally farked how schools were supposed to be funded) like a fat kid to his last Twinkie, they may not have had any other choice.When the landlord knocks at your door, you have two choices: get his money, or be homeless. And he doesn't care where or how you get his money, as long as you get it.

Prop 13 has jack shiat to do with the problems of California schools it's just a convenient excuse by politicians and idiots who don't understand how prop 13 works.

thomps:"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."...Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."

Back in the '90s, the state of Michigan banned capital appreciation bonds altogether. But Lockyer says California needn't go that far. He supports a series of reforms such as capping the payback of debt to four times the amount borrowed.

WOW, such a sweetheart. So rather than the school districts having to pay back 10X the amount they borrowed the noble knight rides to the rescue and only will require them to pay back 4X.

I can't find the article now, but a study was done on new school construction in the Los Angeles area. The cost per sq ft for concrete tilt-up construction exceeded the cost per sq ft of some lavish casinos in Las Vegas. Your tax dollars at work.

DrPainMD:Don't you people understand? When the government spends money it stimulates the economy. Just ask Krugman.

That's actually true. The problem here is that the government isn't actually spending money. It is taxing the poor and giving it to the rich (the bond holders). Only 100 million is actual spending. The other 900 million is simply a reverse wealth transfer.

Seems like a plan. A small community agrees that due to fiscal crisis, they will bankrupt the town, and move when the inevitable default occurs. Aren't congressmen operating on that same plan right now, at a national level?

In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.

'The School District Equivalent Of A Payday Loan'

Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."

feckingmorons:It seems like there should be another solution, but they probably legislated themselves into a corner by limiting class size, requiring so many square feet of football pitch per student, and other very nice, but not essential things.

The voters in 1978 passed Prop 13, which is pretty much the source of all this mess. Listening to my fellow Californians when this passed the consensus was if you limit the amount of money the government can raise then they'll spend the money they do have wisely. And if you've ever seen how poor people spend money, you'd be dissuaded of that notion pretty quick. Because poor people do exactly the sorts of things that the school districts in California do. Rob from the future to pay for the present.